Shipping company Maersk is reportedly selling 10-year bonds that could yield a 1.9 percentage point increase over government bonds. The proceeds from the offering will be used to finance or refinance green assets, such as clean transportation and green buildings. This includes the acquisition of companies that generate at least 90% of their revenue from environmentally-friendly activities.
In November 2021, Maersk issued its first green bond, raising €500 million ($537 million) for a 10-year bond. The funds were intended to finance the purchase of eight methanol-fueled vessels.
Maersk’s latest debt deal will serve as a test for investor demand in the United States, where sales of sustainable bonds have declined due to a backlash against ESG-linked investments. Asset managers are becoming more cautious in scrutinizing ESG-related financing instruments due to concerns that companies may overstate the benefits of these bonds.
Overall, Maersk is seeking to tap into the growing demand for sustainable investments and contribute to environmentally-friendly initiatives with the issuance of these bonds.
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